Campofrío/Groupe Smithfield merger approved

In order to carry out the integration, by means of
absorption of Groupe Smithfield by Campofrío, the shareholders of Campofrío have
approved the capital increase by issuing 49.577.099 shares to be delivered to
the shareholders of Groupe Smithfield.

Once the process is finalised, the
shareholders of the company, which will be called Campofrío Food Group, will
include Smithfield Foods (37%), Oaktree Capital (24%), Pedro and Fernando Ballvé
(12%), Díaz Family (5%), Caja Burgos (4%) and QMC (2%).

This merger of
equals, between Campofrío and Groupe Smithfield, results in the creation of a
leading European company in the processed meat industry and one of the five
largest worldwide with a turnover of €2.1 billion and earnings before tax and
depreciation (EBITDA) of €190 million, according to pro-format combined
figures for the 12 months period ended December 2007.

The new company
will be positioned as the market leader in Spain, France, Portugal and The
Netherlands; also maintaining an important presence in Romania, Germany, United
Kingdom, Italy and Belgium.